n NISM Certifications
NSM General NISM
Medium

What differentiates indemnity and benefit-based insurance?

Practice question from IC 38 Mock Test 17 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Indemnity pays a fixed sum; benefit reimburses actual loss

  2. Indemnity reimburses actual loss; benefit pays a fixed sum

    Correct answer

  3. C

    There is no difference

  4. D

    Indemnity policies are cheaper

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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